Changes to the ACT’s strata and community title laws are expected to be in place on or before 3 May, 2012.
Section 23 of the Act is designed to make it easier for owners’ corporations to install sustainability infrastructure such as photo-voltaic cells and water tanks) on the common property.
A key breakthrough is that an owner’s corporation will be able to approve installation of sustainability infrastructure on the common property by an ordinary resolution of 51 per cent. NSW law currently requires a special resolution of 75 per cent.
The ACT legislation follows NSW, Victoria and Queensland by splitting its strata legislation into two separate Acts covering the development/subtitling//registration of schemes and the management of schemes.
The legislation is remaining substantially the same, with the exception of the following new provisions:
· -removing unnecessary barriers to the adoption of sustainability measures and utility infrastructure
· -introducing a code of conduct for executive committee members
· -changing the resolution for annual administrative and special purpose fund budget approval from special to ordinary, which removes an excessive restriction on managing owners corporation funds
· -clarification of financial provisions to clearly link budgets, contributions and
expenditure for each type of fund
expenditure for each type of fund
· -providing guidance for ACAT approval of developer control period contracts
· -clarification of insurance requirements
The ACT bill imposes rules on the owners’ corporation, including consideration of site and maintenance plans and details of financing arrangements. The owners’ corporation also has to be satisfied that the long-term benefit is greater than the cost of installing and maintaining the infrastructure. NSW does not have these requirements.
By Lyn Drummond
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